Which of the following statements about comparative advantage is true?
A) A country with a rising price level will lose any existing comparative advantage.
B) Comparative advantage is based solely on differences in climate.
C) To have a comparative advantage a country must also have an absolute advantage.
D) Comparative advantage for certain products may be acquired by deliberate domestic government policy.
E) Comparative advantage is based solely on differences in factor endowments.
Correct Answer:
Verified
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